F INANCIAL S TATEMENTS S ALES T AX AND C APITAL R ENEWAL C APITAL P ROJECTS F UNDS

Transcription

1 F INANCIAL S TATEMENTS S ALES T AX AND C APITAL R ENEWAL C APITAL P ROJECTS F UNDS ORANGE COUNTY PUBLIC SCHOOLS Year Ended With Report of Independent Auditor

2 TABLE OF CONTENTS REPORT OF INDEPENDENT AUDITOR... 1 FINANCIAL STATEMENTS Balance Sheet Sales Tax and Capital Renewal Capital Projects Funds... 3 Statement of Revenues, Expenditures, and Changes in Fund Balance Sales Tax and Capital Renewal Capital Projects Funds... 4 Notes to Financial Statements Sales Tax and Capital Renewal Capital Projects Funds... 5

3 Report of Independent Auditor To the Honorable Members of the School Board To the Members of the Citizens Construction Oversight and Value Engineering Committee (COVE) Orange County Public Schools Report on the Financial Statements We have audited the accompanying financial statements of the Sales Tax I, Sales Tax II and Capital Renewal Capital Projects Funds of Orange County Public Schools (the District ) as of and for the year ended, and the related notes to the financial statements, which collectively comprise the basic financial statements as listed in the table of contents. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the Sales Tax I, Sales Tax II and Capital Renewal Capital Projects Funds of the District as of, and the changes in respective financial position for the years then ended in conformity with accounting principles generally accepted in the United States of America.

4 Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above present only the Sales Tax I, Sales Tax II and the Capital Renewal Capital Projects Funds of the District at June 30, 2016 and do not purport to, and do not, present fairly the financial position of Orange County Public Schools, as of, and the changes in its financial position and its cash flows, where applicable, for the year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Reporting Required by Government Auditing Standards As discussed in Note 1, the Sales Tax I, Sales Tax II and the Capital Renewal Capital Projects Funds are administered by Orange County Public Schools, for which, in accordance with Government Auditing Standards, a report is issued which includes our consideration of the Sales Tax I, Sales Tax II and the Capital Renewal Capital Projects Funds internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the System s internal control over financial reporting and compliance. Orlando, Florida December 9,

5 BALANCE SHEET SALES TAX AND CAPITAL RENEWAL Capital Sales Tax Sales Tax Renewal Fund I Fund II Fund Assets Cash $ 55,030,956 $ 11,022,090 $ 59,912,696 Investments 189,238,253 37,737, ,442,507 Interest receivable 1,018,735 Due from other agencies 19,721,317 Total assets $ 244,269,209 $ 68,481,394 $ 548,373,938 Liabilities and fund balance Liabilities: Accounts payable $ 2,866,145 $ 750,622 $ 609,831 Construction contracts payable 1,870, ,328 Construction contracts payable retained percentage 4,566, , ,959 Total liabilities 9,303,556 1,192,340 1,015,118 Fund balance: Restricted 234,965,653 67,289, ,358,820 Total fund balance 234,965,653 67,289, ,358,820 Total liabilities and fund balance $ 244,269,209 $ 68,481,394 $ 548,373,938 The accompanying notes are an integral part of the financial statements. 3

6 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE SALES TAX AND CAPITAL RENEWAL Year Ended Capital Sales Tax Sales Tax Renewal Fund I Fund II Fund Revenues Local sales taxes $ 128,833,171 $ 95,191,237 $ Investment income 3,604, ,630 11,026,852 Other miscellaneous 148,675 10,244 Total revenues 132,586,795 95,587,867 11,037,096 Expenditures Facilities acquisition and construction 108,629,073 12,379,353 15,880,727 Excess (deficiency) of revenues over expenditures 23,957,722 83,208,514 (4,843,631) Other financing (uses) sources Transfers (out) in (72,087,500) 72,087,500 Total other financing (uses) sources (72,087,500) 72,087,500 Net change in fund balance (48,129,778) 83,208,514 67,243,869 Fund balance (deficit), beginning 283,095,431 (15,919,460) 480,114,951 Fund balance, ending $ 234,965,653 $ 67,289,054 $ 547,358,820 The accompanying notes are an integral part of the financial statements. 4

7 1. Summary of Significant Accounting Policies Reporting Entity Orange County Public Schools (the District) has direct responsibility for operation, control, and supervision of District schools and is considered a primary government for financial reporting. The District is considered part of the Florida system of public education. The governing body of the District is the Orange County District School Board (the Board) that is composed of eight elected members, one of which is a Board Chairman. The appointed Superintendent of Schools (Superintendent) is the executive officer of the Board. Geographic boundaries of the District correspond with those of Orange County, Florida. Pursuant to Section (11)(f), Florida Statutes, the Superintendent is responsible for keeping records and accounts of all financial transactions in the manner prescribed by the Florida State Board of Education. The accompanying financial statements present only the activities of the Sales Tax Capital Projects Funds (Sales Tax Funds) and Capital Renewal Capital Projects Fund (Capital Renewal Fund) of the District (collectively referred to as the Funds) and were prepared for the purpose of demonstrating compliance with School Board Resolution No. 05/02/02 NC-1 and School Board Resolution No These financial statements are not intended to present the basic financial statements of the District. Measurement Focus, Basis of Accounting and Financial Statement Presentation The Funds are governmental funds utilizing the current financial resource measurement focus and the modified accrual basis of accounting. Revenues are recognized in the accounting period in which they become susceptible to accrual, that is, both measurable and available. Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Significant revenues susceptible to accrual include sales taxes and interest on investments. The District considers revenues from sales taxes as available if they are collected within forty-five (45) days after year-end and considering a consistent 12 month cycle. Expenditures are recorded when the fund liability is incurred. The District has designated the Sales Tax Fund I and Sales Tax Fund II to account for the financial resources generated by sales tax and other local sources to be used for educational capital outlay needs, including new construction, renovation and remodeling projects. 5

8 1. Summary of Significant Accounting Policies (continued) The major revenue source of the Sales Tax Fund I is the half-penny sales tax approved by the voters in Orange County, Florida in 2002, with an effective date from January 1, 2003 and ending December 31, This revenue is collected by local businesses, sent to the Florida Department of Revenue, and then remitted to the District. The reported expenditures of the Sales Tax Fund I for the year ended June 30, 2016, include program management and insurance costs of $3,349,166 and $108,923, respectively. These costs are allocated to programs based on the amount of time worked by the program management company. These program costs are then allocated to the projects based on project budgets. In August 2014, Orange County voters approved the Sales Tax Fund II, a renewal of the half penny sales tax, with an effective date from January 1, 2016 and ending December 31, This revenue is collected by local businesses, sent to the Florida Department of Revenue, and then remitted to the District. The reported expenditures of Sales Tax Fund II for the year ended, include program management costs of $400,279. These costs are allocated to programs based on the amount of time worked by the program management company. These program costs are then allocated to the projects based on project budgets. The Capital Renewal Fund is to be used for the replacement of major school building systems and components that are needed to preserve the efficient operation of school facilities. The Funds are not intended for the initial renovation of the remaining schools on the original list of 136 schools to be funded from sales taxes. The Funds are not intended for routine maintenance of school facilities or to pay for project elements which cost less than $50,000. The Capital Renewal Fund is funded primarily by transfers from the Sales Tax Funds. The reported expenditures of the Capital Renewal Fund for the year ended, include program management costs and insurance costs of $1,303,142 and $4,382, respectively. These costs are allocated to programs based on the amount of time worked by the program management company. These program costs are then allocated to the projects based on project budgets. 6

9 1. Summary of Significant Accounting Policies (continued) Impact of Recently Issued Accounting Principles In February 2015, the GASB issued Statement 72, Fair Value Measurement and Application. The objective of this Statement is to improve financial reporting by clarifying the definition of fair value for financial reporting purposes, establishing general principles for measuring fair value, providing additional fair value application guidance, and enhancing disclosures about fair value measurements. These improvements are based in part on the concepts and definitions established in Concepts Statement No. 6, Measurement of Elements of Financial Statements, and other relevant literature. The requirements of this Statement are effective for financial statements for periods beginning after June 15, The District has implemented this Statement for the fiscal year GASB Statement 79, Certain External Investment Pools and Pool Participants, was effective for reporting periods beginning after June 15, 2015, except for certain provisions on portfolio quality, custodial credit risk, and shadow pricing. Those provisions are effective for reporting periods beginning after December 15, GASB 79 establishes criteria for an external investment pool to qualify for making the election to measure all of its investments at amortized cost for financial reporting purposes. An external investment pool qualifies for that reporting if it meets all of the applicable criteria established in this Statement. The specific criteria address (1) how the external investment pool transacts with participants; (2) requirements for portfolio maturity, quality, diversification, and liquidity, and (3) calculation and requirements of a shadow price. If an external investment pool meets the criteria in this Statement and measures all if its investments at amortized cost, the pool s participants should also measure their investments in that external investment pool at amortized cost for financial reporting purposes. The District has implemented this Statement for the fiscal year

10 2. Investments Investments consist of amounts placed with various money market mutual funds which hold a majority of U.S. government securities, municipal securities and repurchase agreements. Investments also consist of the State of Florida s Special Purpose Investment Account (SPIA) authorized in Section 17.61(1), Florida Statutes, Florida Prime (formally SBA), Florida Education Investment Trust Fund (FEITF), corporate and municipal bonds and United States government securities. All investments are reported at fair value. The District s investment in SPIA is part of an investment pool managed by the Florida Department of Treasury, where the District owns a share of the pool, not the underlying shares of the assets in the pool. The District relies on policies developed by the State Treasury for managing interest and credit risk for this external investment pool. At, the Funds had the following investments: Sales Tax Fund I Fair Value Investments measured using net asset value (NAV): FL Special Purpose Investment Account (SPIA) $ 112,426,763 Total investments measured at NAV 112,426,763 Investments measured using amortized cost: FL Prime (formally SBA) 66,531,881 Florida Education Investment Trust Fund 10,279,609 Total investments reported at amortized cost 76,811,490 Total Investments $ 189,238,253 Sales Tax Fund II Fair Value Investments measured using net asset value (NAV): FL Special Purpose Investment Account (SPIA) $ 22,420,201 Total investments measured at NAV 22,420,201 Investments measured using amortized cost: FL Prime (formally SBA) 13,267,821 Florida Education Investment Trust Fund 2,049,965 Total investments reported at amortized cost 15,317,786 Total Investments $ 37,737,987 8

11 2. Investments (Continued) Capital Renewal Fund Fair Value Measurements at Reporting Date Investments by fair value level Amounts Measured at Fair Value Level 1 Level 2 Level 3 U.S. Government Agencies $ 166,932,196 $ - $ 166,932,196 $ - Corporate bonds 127,450, ,450,587 - Municipal bonds 40,690,221-40,690,221 - Total investments by fair value level 335,073,004 $ - $ 335,073,004 $ - Investments measured using net asset value (NAV): FL Special Purpose Investment Account (SPIA) 90,522,977 Total investments measured at NAV 90,522,977 Investments measured using amortized cost: FL Prime (formally SBA) 53,569,665 Florida Education Investment Trust Fund 8,276,861 Total investments reported at amortized cost 61,846,526 Total Investments $ 487,442,507 The Funds categorize their fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets, level 2 inputs are significant other observable inputs, and level 3 inputs are significant unobservable inputs. The Funds recurring fair value measurements are valued using quoted prices for similar assets in active markets or identical or similar assets in inactive markets (Level 2 observable inputs). The fair value amounts presented in the above table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statements of net position. Certain investments are measured at fair value using the net asset value (NAV) per share (or its equivalent) practical expedient or amortized cost and have not been classified in the fair value hierarchy. Florida Prime and Florida Education Investment Trust Fund are reported at amortized cost, and the Florida Special Purpose Investment Account is reported at net asset value per share. The Florida Special Purpose Investment Account may be redeemed without advance notice and there are no limitations as to the frequency of redemptions or unfunded commitments for further investment. 9

12 2. Investments (Continued) Interest Rate Risk District policies limit the maturity of investments to 5 year weighted average life as a means of limiting its exposure to fair value losses arising from rising interest rates. Also, at least 3 months of average disbursements should be invested in highly liquid funds with a maturity range of 0-90 days. The District has $207,622,417 in obligations of the United States Government Sponsored Agencies/Federal Instrumentalities and Municipal Bonds and $127,450,587 in Corporate Bonds. These securities included embedded options to call the entire security or a portion thereof, at the option of the issuer; or, depending on market conditions, the issuer may decide to leave the security intact, at stated interest rate, until final maturity. These securities have various call dates with final maturity dates between July 2016 and December At, the District s investments had weighted average maturities of 2.65 years in the SPIA, 58 days in the SBA, 41 days in the Florida Education Investment Trust fund, 1.35 years in corporate bonds, and 3.95 years in government obligations and municipal bonds. Credit Risk Investments authorized by District policy are: a. Direct Obligations of the US Treasury; b. US Government Sponsored Agencies or Federal Instrumentalities; c. Investment in Florida Prime Fund; d. Investment in the Florida Special Purpose Investment Account; e. Investment in the Florida Education Investment Trust Fund; f. Certificates of Deposit and Savings Accounts; g. Repurchase Agreements; h. State and/or Local Government Taxable or Tax-Exempt Debt; i. Corporate Notes; j. Commercial Paper; and, k. Money Market Mutual Funds. 10

13 2. Investments (Continued) Custodial Credit Risk Section (18), Florida Statutes, requires the District to earmark all investments and 1) if registered with the issuer or its agents, the investment must be immediately placed for safekeeping in a location that protects the governing body s interest in the security; 2) if in a book entry form, the investment must be held for the credit of the governing body by a depository chartered by the Federal Government, the State, or any other State or territory of the United States which has a branch or principal place of business in this State, or by a national association organized and existing under the laws of the United States which is authorized to accept and execute trusts and which is doing business in this State, and must be kept by the depository in an account separate and apart from the assets of the financial institution; or 3) if physically issued to the holder but not registered with the issuer or its agents, must be immediately placed for safekeeping in a secured vault. The Funds $207,622,417 investments in obligations of United States Government Agencies and Instrumentalities, and Municipal Bonds and $127,450,587 in Corporate Bonds are held by the safekeeping agent, in the name of the District. Concentration of Credit Risk Composition of investment portfolio is limited by District policy to the following on a district-wide basis: Direct obligations of the U. S Treasury 100% U. S. Government Sponsored Agencies (Federal Instrumentalities) 80% Florida Prime Fund 100% Florida Special Purpose Investment Account 100% Florida Education Investment Trust Fund 100% Certificates of Deposit and Savings Accounts 100% Repurchase Agreements, fully collateralized by Direct Obligations of U.S. Government Securities 30% State and/or Local Government Taxable or Tax-Exempt Debt 20% Corporate Notes 20% As of, the Funds investments in the SPIA totaled $225,369,941, which is rated A+f by S&P. These funds allocate investment earnings monthly. As of, the District investments in the SBA accounts totaled $133,369,367, which are 2a-7 like funds and are AAA rated by S&P. These funds allocate investment earnings monthly. As of, the District investments in the Florida Education Investment Trust Fund totaled $20,606,435. These funds are a 2a-7 like funds and are rated AAAm by S&P As of, the Funds investments in corporate bonds were $127,450,587, all of which are rated A or higher. 11

14 2. Investments (Continued) As of, the Funds investments in government obligations and municipal bonds were $207,622,417, all of which are rated A or higher. All Funds investments are in compliance with District policy in relation to interest rate risk, credit risk, and concentration of credit risk. 3. Due From Other Agencies Due from other agencies of $19,721,317 is the amount due from the Florida Department of Revenue for sales tax collections. These amounts were collected by businesses through May 31, 2016, and remitted in July Interfund Transfers The amount transferred each year, from the Sales Tax Fund I to the Capital Renewal Fund, is 2.4% of the beginning of the year cumulative capital expenditures in all the capital funds since fiscal year This transfer is to fund the replacement of major school building system components that will be needed to preserve the efficient operation of the school facilities that were constructed or renovated since fiscal year During fiscal year ended, interfund transfers in the amount of $72,087,500 were transferred from the Sales Tax Fund I to the Capital Renewal Fund. With the extension of the sales tax program in fiscal year 2016, the amount to be transferred each year from the Sales Tax Fund II to the Capital Renewal Fund will continue to be 2.4% of cumulative expenditures in all capital funds excluding library books, furniture, fixtures and equipment and site acquisitions starting with an adjusted base. 5. Other Fund Activities The American Recovery and Reinvestment Act of 2009 (ARRA) was enacted to provide a stimulus to the economy including provisions for alternative forms of financing public school facilities. The Act authorizes the issuance of obligations called qualified school construction bonds (QSCBs or COPS) for the construction, renovation or repair of a public school facility, or for the acquisition of land on which such a facility is to be constructed. In fiscal year 2010, pursuant to the Recovery Act, the District was allocated the authority to issue up to $35,824,000 aggregate principal amount of QSCBs during calendar year Holders of QSCBs are entitled to a tax credit in an amount determined by the Secretary of the Treasury on each business day. The Series 2009B QSCBs were issued in the amount of $35,823,500 under the Master Lease Program in the form of Certificates of Participation during the 2010 fiscal year. The proceeds of the COPs were designated to be used to finance the projects specified as (i) Westridge Middle School and Walker Middle School remodeling and renovation project and (ii) correction of outstanding deficiencies at various schools throughout the District. The construction projects were originally planned to be constructed using Sales Tax revenues. 12

15 5. Other Fund Activities (Continued) The costs of the actual construction of the Westridge Middle School and Walker Middle School projects are charged in the Series 2009B QSCB Capital Project Fund where the proceeds were recorded. The Trustee, who actually holds the proceeds, reimburses the District for these expenditures. Funds were transferred in fiscal year 2010 from the Sales Tax Fund I to the Series 2009B QSCB Debt Service Fund in the amount of $35,820,000 to cover the debt service on the QSCBs (COPs) for this project. All interest earned in this fund will be retained in the fund to be used for repayment of the specified outstanding COPs, including an average supplemental interest coupon of %. Any proceeds remaining in the fund at the end of the repayment schedule will be returned to the Sales Tax Fund I to be used for other eligible projects. In fiscal year 2011, pursuant to ARRA, the District was allocated the authority to issue up to $36,229,000 aggregate principal amount of QSCBs. Although initially QSCB s were tax credit bonds, as a result of amendments to the Recovery Act contained in the Hiring Incentives to Restore Employment Act (the HIRE Act), effective March, 2010, QSCB s were then issued as current interest paying taxable bonds, with an interest subsidy from the U.S. Treasury at a rate equal to the tax credit rate otherwise applicable to the QSCB s on the date of sale. The subsidy received by the District was intended to cover 100% of the interest payable on the QSCB resulting in interest free financing for the District. However, as a result of the Federal sequestration, this subsidy was reduced and therefore resulted in a minimal interest obligation of the District. The 2010A QSCBs were issued in the amount of $36,229,000 in fiscal year 2011 under the Master Lease Program in the form of Certificates of Participation. The proceeds of the COPs were designated to be used to finance the projects specified as Arbor Ridge K-8, Eccleston Elementary School and Sun Blaze Elementary School. The Arbor Ridge K-8 and Eccleston Elementary School construction projects were originally planned to be constructed using Sales Tax revenues. The costs of the actual construction of the Arbor Ridge K-8, Eccleston Elementary School and Sun Blaze Elementary School projects are charged in the Series 2010A QSCB Capital Project Fund where the proceeds were recorded. The Trustee, who actually holds the proceeds, reimburses the District for these expenditures. Funds were transferred from the Sales Tax Fund I to the Series 2010A QSCB Debt Service Fund in the amount of $23,436,331 during the 2011 fiscal year to cover the future debt service on the QSCBs (COPs) for this project. All interest earned in this fund will be retained in the fund to be used for repayment of the specified outstanding COPs. Any proceeds remaining in the fund at the end of the repayment schedule will be returned to the Sales Tax Fund I to be used for other eligible projects. Since the District was able to purchase a Guaranteed Investment Contract at the maximum rate of return permitted by IRS restrictions, the District transferred to the Debt Service Fund the net amount needed to cover the anticipated principal and interest payments in the amount of $23,436,

16 5. Other Fund Activities (Continued) The charts below show a summary of the activity in the QSCB 2010 and 2009 Capital Projects and Debt Service Funds: Related Activity in Other Capital Projects Funds - Cumulative Through Capital Projects QSCB 2010 QSCB 2009 Revenues Interest earnings $ 136,319 $ 58,869 Total revenues 136,319 58,869 Expenditures Walker MS - 25,279,279 Westridge MS - 10,282,318 Sun Blaze ES 13,570,099 - Eccleston ES 10,538,095 - Arbor Ridge K-8 12,118,553 - Total expenditures 36,226,747 35,561,597 Excess (deficiency) of revenues over expenditures (36,090,427) (35,502,728) Other financing (uses) sources COPs proceeds 36,103,270 35,502,728 Transfer (out) - debt service fund (12,843) - Total other financing (uses) sources 36,090,427 35,502,728 Fund balance, ending $ - $ - 14

17 5. Other Fund Activities (Continued) Related Activity in Other Debt Service Funds - Cumulative Through Debt Service QSCB 2010 QSCB 2009 Revenues Federal subsidy $ 8,923,208 $ - Interest earnings 2,227,277 4,094,113 Total revenues 11,150,485 4,094,113 Expenditures Interest and fees 9,507,352 3,069,499 Total expenditures 9,507,352 3,069,499 Excess (deficiency) of revenues over expenditures 1,643,133 1,024,614 Other financing (uses) sources COPs proceeds 125, ,272 Transfer in debt service fund - 230,000 Transfer in sales tax fund 23,436,331 35,820,000 Transfer in capital projects fund -CIT ,500 17,500 Transfer in capital projects fund -QSCB 2010A 12,843 - Total other financing sources 23,592,404 36,384,772 Fund balance, ending $ 25,235,537 $ 37,409, Expenditures by Project During the closeout of a project, final adjustments are made for sales tax savings, final payments, vendor reimbursements, and other items. These adjustments may result in negative amounts being recorded to a project during a specific fiscal year. 15

18 6. Expenditures by Project (Continued) The following is a summary of the expenditures by project for the fiscal year ended : Sales Tax Fund I Expenditures Description of Project Amount Cypress Creek HS $15,938,308 Dream Lake ES 13,646,614 Tangelo Park ES 13,283,646 Lockhart ES 12,965,058 Riverside ES 11,247,278 Carver MS 7,338,724 Grand Avenue Primary Learning Center 5,242,680 Ventura ES 5,200,548 Clay Springs ES 3,753,744 Lake Weston ES 2,849,176 Apopka ES 2,699,157 Lake Whitney ES 2,662,024 Dr Phillips HS 1,221,807 Lovell ES 1,146,645 Meadow Woods ES 951,985 Colonial HS 907,547 Westridge MS 812,829 Apopka HS 601,595 Mollie Ray ES 582,166 Kaley-Lake Como ES 561,787 Freedom HS 554,578 Rock Lake ES 498,652 West Orange HS 483,416 Engelwood ES 483,018 Ivey Lane ES 414,339 East River HS School 396,331 Southwest MS 381,358 Oak Hill ES 367,444 Colonial HS 9Th Grade Center 335,936 Waterford ES 331,452 South Creek MS 329,670 Evans HS 270,132 Lake Silver ES 187,315 Ocoee ES 161,691 Oak Ridge HS 104,028 Pineloch ES 75,012 16

19 6. Expenditures by Project (Continued) Description of Project Amount Cypress Park ES 60,998 West Orange HS 9Th Grade Center 33,305 Frangus ES 30,554 Dover Shores ES 29,676 Cherokee 23,797 Wheatley ES 23,464 Shingle Creek ES 20,872 Washington Shores ES 14,078 Little River ES 12,783 Hidden Oaks ES 10,840 Wetherbee ES 9,785 Hunters Creek MS 6,415 Spring Lake ES 4,393 Princeton ES 599 Aloma ES (2,151) Lancaster ES (16,731) John Young ES (166,958) Dr Phillips ES (214,327) Cypress Springs ES (240,009) Total $108,629,073 17

20 6. Expenditures by Project (Continued) Sales Tax Fund II Expenditures Description of Project Amount Ventura ES $4,417,182 University HS 1,530,685 Digital Curriculum 1,363,643 Wekiva HS 1,279,749 Winter Park HS 1,047,739 Lake Nona HS 972,240 Edgewater HS 777,647 Ocoee HS 400,741 Winter Park HS 9Th Grade Center 321,204 Dr Phillips HS 144,394 Engelwood ES 62,451 Cypress Creek HS 61,678 Total $12,379,353 18

21 6. Expenditures by Project (Continued) Capital Renewal Expenditures Description of Project Amount Boone HS $2,006,697 Chain Of Lakes MS 1,976,291 Timber Creek HS 1,862,917 Olympia HS 1,695,436 Jones HS 1,187,834 Liberty MS 1,080,728 Metrowest ES 901,882 Apopka HS 762,176 Howard MS 641,198 University HS 371,458 Winter Park HS 289,848 West Creek ES 256,927 Discovery MS 243,346 Conway MS 239,767 Freedom MS 200,400 Orlo Vista ES 189,057 Colonial HS 185,641 Legacy MS 184,939 Citrus ES 147,435 Glenridge MS 145,497 Odyssey MS 141,431 Camelot ES 138,184 Vista Lakes ES 109,838 Hunters Creek MS 102,429 Gotha MS 100,593 Blankner K-8 94,583 Oakshire ES 86,441 South Creek MS 73,393 Ocoee MS 66,965 Piedmont Lakes MS 65,758 Lawton Chiles ES 65,158 Robinswood MS 62,960 19

22 6. Expenditures by Project (Continued) Description of Project Amount Colonial HS 9Th Grade Center 59,913 Pinewood ES 57,508 Riverdale ES 49,663 Ridgewood Park ES 47,779 Southwood ES 39,087 Lakeville ES 17,373 Bonneville ES 16,171 Lee MS 7,222 Lakeview MS 5,201 Freedom HS 134 Tildenville ES 70 Eagles Nest ES 68 Hiawassee ES 29 Northlake Park Community ES (2,160) Excel (22,785) Palmetto ES (71,753) Total $15,880, Construction Contract Commitments The following is a summary of major construction contract commitments remaining at : Contract Completed Balance Project Amount to Date Committed Carver MS Replacement $ 23,564,939 $ 4,253,941 $ 19,310,998 Englewood ES Replacement 14,598,872-14,598,872 Ventura ES Replacement 14,062,545 4,834,015 9,228,530 Total $ 52,226,356 $ 9,087,956 $ 43,138,400 20

23 8. Fund Balance Reporting The financial statements include restricted fund balances of the Sales Tax Fund I, Sales Tax Fund II and Capital Renewal funds of approximately $235.0 million, $67.3 million and $547.4 million, respectively, at. These fund balances are available for use only on educational capital outlay expenditures in accordance with School Board Resolution No. 05/02/02 NC-1 and School Board Resolution No Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions (GASB 54), establishes a hierarchy for fund balance classifications and the constraints imposed on the uses of those resources. Restricted Fund balances that are constrained by external parties, constitutional provisions, or enabling legislation. Committed Fund balances that contain self-imposed constraints of the government from its highest level of decision making authority such as school board resolutions. Assigned Fund balances that contain self-imposed constraints of the government to be used for a particular purpose. Unassigned Fund balances that do not have a constraint for any particular purpose. A fund balance deficit will be reported as a negative amount in the unassigned classification of that fund. The District has classified the spendable fund balances as Restricted, Assigned, and Unassigned, and considered each to have been spent when expenditures are incurred. The District does not have a policy regarding the commitment or assignment of fund balances; however, by resolution, the Board has given the ability to assign fund balance to the superintendent and the Chief financial Officer. The District does not report any committed fund balance. When restricted, assigned, and unassigned funds are available for use, the District s procedures are to use the restricted funds first, followed by the assigned funds and then the unassigned funds last. 21